Wisconsin Ag Connection - National/World News - Saputo's Profit Jumps During Fourth Quarter

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Saputo's Profit Jumps During Fourth Quarter
USAgNet - 06/10/2008

Canadian dairy products company Saputo Inc. said its profit and revenue climbed in the fourth quarter, boosted by a U.S. acquisition as well as higher sales volumes and prices. Saputo, one of North America's biggest cheese makers, said net earnings rose to $75.2 million, or 36 cents a share, from $62.9 million, or 30 cents a share, a year earlier.

The results were as expected, with analysts, on average, forecasting a profit of 36 cents a share before special items. Revenue at the Montreal-based firm grew by 25.5 per cent to $1.3 billion, with U.S. dairy products revenue rising to $481.8 million.

The inclusion of its acquisition of U.S. dairy company Land O'Lakes, along with an increase in sales volume and selling prices, were the main factors for the rise in revenue, Saputo said.

Revenue from operations in Canada, Europe and Argentina rose to $746 million, helped in part by higher prices in Canada and Argentina and the inclusion of its British operations.

Revenue from its grocery products segment fell to $38.1 million on lower Canadian sales volume due to price increases. The company said it was also hurt by highly competitive prices.

Saputo said its recent purchase of Wisconsin-based Alto Dairy Cooperative will enhance the company's presence in the United States. It plans to fully integrate Alto and Land O'Lakes during the current fiscal year.